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Please answer this quesation ( 1, 2 , 3 and 4) the answer is already in Chegg but not clear . plz solve this problem
Please answer this quesation ( 1, 2 , 3 and 4)
the answer is already in Chegg but not clear .
plz solve this problem ( in excel and send the file if possible )
12-53 Equipment Replacement and Strategic Considerations The management of Devine Instrument Company is considering the purchase of a new drilling machine, model RoboDril 1010K. According to the specifications and testing results, RoboDril will substantially increase productivity over Accu- LO 12-4, 12-8] Dril X10, the machine Devine is currently using 8 years ago for $120,000 and is being depreciated over 10 years The AccuDril was acquired expected useful life with an estimated salvage value of $20,000. The engineering department expects the AccuDril to keep goin useful life. The estimated cost for the overhaul is $100,000. The overhauled machine will be depre- ciated using straight-line depreciation with no salvage value. The overhaul wll improve the machine's operating efficiency approximately 20%. No other operating conditions will be affected by the overhaul. g for another three years afte r a major overhaul at the end of its expected RoboDril 1010K is selling for $250,000. Installing, testing, rearranging, and training will cost another $30,000. The manufacturer is willing to take the AccuDril as a trade-in for $40,000. The RoboDril will be depreciated using the straight-line method with no salvage value. New technology most likely will make RoboDril obsolete to the firm in five years. Variable operating cost for either machine is the same: $10 per hour (cash-based). Other perti- nent data followStep by Step Solution
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